The required down payment can vary. Depending on the type of mortgage, down payments generally range from 5% to 20% of the purchase price.

To obtain a conventional mortgage, home buyers are required to put down at least 20% of the purchase price or appraised value (whichever is less) as a down payment. If you don't have the necessary time or resources to save a full 20% down payment, you can choose a high-ratio mortgage and buy a home with a lower down payment. This option is called a high-ratio mortgage and it requires you to purchase insurance.

Whether you choose a conventional or a high-ratio mortgage, one thing is almost always certain: the larger your down payment, the more you save in the long run.

Want more information? Visit the Canada Customs and Revenue Agency Publication.

RSP Home Buyers' Plan

The RSP Home Buyers' Plan (HBP) lets a first-time buyer withdraw up to $25,000 from RSPs for a home purchase. The withdrawn amount must be repaid within 15 years, subject to a minimum annual repayment that is 1/15 of the amount withdrawn. If the full $25,000 is withdrawn, the minimum annual repayment is $1,666. If less than the minimum is repaid in any particular year, the balance is added to the taxpayer's income.

Insuring Your High-Ratio Mortgage

CMHC or Genworth Financial will insure a mortgage that is greater than 80% of lending value of the house.  Eligible borrowers include anyone who buys a home in Canada intending to occupy it as their principal residence.

Purchasers typically can use up to 32% of their gross family income for payments of mortgage principal and interest, property taxes and heating. A buyer's total debt load (including consumer loans, etc.) cannot exceed 40% of the gross family income. Check with your mortgage consultant to verify these percentages as they vary from time-to-time.

People who insure a mortgage loan with CMHC or GEMICO pay a premium. The premium is based on the down payment and loan amount. A list of the mortgage insurance premiums can be found here. These premiums also change from time-to-time, so best to inquire at the time of arranging your loan.